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The £400 Energy Grant: Are You Eligible And When Will it be Paid?

Worried senior man checking bills at home
(Image credit: Getty Images)

Homeowners in the UK will receive a £400 energy grant later this year to tackle the rising cost of living, but the way you receive the grant will depend on how you pay for your energy.  

Soaring energy price rises led to Ofgem raising the Energy Price Cap rise in October 2021 and April 2022, and millions of households will have to pay an extra £800 per year for their energy when the price cap again rises in October, this time to £2,800.

The £400 energy grant was part of a £15bn government support package announced in May to tackle the cost of living crisis - here’s what you need to know about whether you’re eligible, when it will be paid and how you’ll be able to access the grant. 

Who is Eligible for the £400 Energy Grant?

Every household in England, Scotland and Wales which is connected to the electricity grid will be eligible for the grant. This is expected to cover around 28 million homes, while equivalent support will be provided to households in Northern Ireland, where energy policy is devolved. 

When Will it be Paid?

The payment will begin from October 2022 and will be spread over six months, rather than one lump sum payment. 

How Will it be Paid?

The finer details are yet to be confirmed by energy companies, but you do not have to apply for it. Direct debit and credit customers will have the money credited to their account, while anyone using pre-payment meters will either have the money applied to the meter or paid via a voucher. 

Will it Need to be Repaid?

No. The £400 grant is a replacement for the £200 energy rebate chancellor Rishi Sunak announced earlier this year, which households had been expected to pay back from April 2023. 

Who Isn’t Eligible for the Grant?

Renters who pay energy bills will receive the grant directly, but tenants who pay rent (which includes bills) to a landlord will not receive the grant - unless the landlord chooses to pass this on, such as via a reduction in rent. 

Households without a domestic electricity supply contract aren’t eligible for the grant either. 

What Other Support Is Available?

A £650 payment will be made to over eight million low-income households in receipt of certain benefits. This will be automatically made into bank accounts through two instalments, the first (£326) from 14 July and the second (£324) from later in the year. 

The government also announced a £150 council tax rebate in February for households in England with a council tax band of A-D, which has now been received by over 80% of households. Find out more about the government’s cost of living support for households

You can also find insulation grants and heat pump grants to help make energy-efficient improvements to your home. 

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 

He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.